What Are tax liens & tax deeds in a self-directed IRA?

A self-directed IRA may hold certain tax lien certificates and tax deeds, subject to applicable laws and account requirements. Tax liens generally involve claims associated with unpaid property taxes, while tax deeds may involve acquiring an interest in real property through a tax sale.

Rules, procedures, and ownership rights vary by state and county.

Understanding Tax Liens & Tax Deeds in a Self-Directed IRA

Tax Lien Certificates: May provide rights to collect delinquent property taxes, interest, or penalties, depending on applicable laws.
Tax Deeds: May involve acquiring ownership or other rights in real property through a tax sale
State & County Requirements: Auction procedures, redemption periods, payment deadlines, and ownership requirements vary by location.
Risks & Responsibilities: Tax liens and tax deeds may involve title issues, additional expenses, redemption restrictions, or potential loss of funds.

How Tax Liens & Tax Deeds work in a Self-Directed IRA

Tax lien and tax deed transactions are directed by the account owner. Mountain West IRA provides administrative and recordkeeping services but does not select, recommend, research, evaluate, or perform due diligence on assets.

Research the Asset: Review applicable state and county laws, auction requirements, property records, redemption procedures, and potential risks. Conduct your own due diligence.
Complete & Submit Purchase Instructions: Contact Mountain West IRA's Transactions Department to confirm the applicable purchase documents and administrative requirements. Complete and sign the required purchase instructions, and review and approve supporting documents as applicable before submitting them to Mountain West IRA.
Transactions Department
Phone: 208-510-0859
Email: transactions@mwira.com
Administrative Review & Authorization: Mountain West IRA reviews the submitted documentation for administrative requirements and coordinates any necessary corrections or additional information. Once requirements are satisfied, an authorized signer executes applicable documents on behalf of the IRA, when required.‍
Fund the Transaction: Once all administrative requirements are satisfied and sufficient IRA funds are available, Mountain West IRA processes authorized payments at the account owner's direction, subject to applicable auction procedures and processing requirements.
Maintain Your Asset: Proceeds attributable to IRA-owned tax liens or tax deeds must be deposited directly into the self-directed IRA, and eligible asset-related expenses must be paid from IRA funds. Account owners are responsible for monitoring applicable redemption periods, deadlines, and other asset-related requirements.

Getting Started With Your Self-Directed IRA

Follow the steps below to establish and fund your self-directed IRA, submit asset purchase instructions, and understand ongoing account requirements.

Complete Your Starter Kit. Select the appropriate account application below. To request electronic signature documents, email accounts@mwira.com or call 208-314-2580.

Traditional IRA Starter Kit

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Roth IRA Starter Kit

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SEP Starter Kit

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Individual 401(k) Plan Starter Kit

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SIMPLE IRA Starter Kit

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Health Savings Account (HSA) Starter Kit

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Traditional IRA Starter Kit

PDF Download

Roth IRA Starter Kit

PDF Download

SEP Starter Kit

PDF Download

SIMPLE IRA Starter Kit

PDF Download

Precious Metals Foreign Currency Starter Kit

PDF Download

Individual 401(k) Plan Starter Kit

PDF Download

Health Savings Account (HSA) Starter Kit

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Fund Your Account. Fund your account through an eligible transfer, rollover, or contribution, depending on the account type and your circumstances.

Submit Your Purchase Instructions. Complete the appropriate transaction forms and provide any required supporting documentation to Mountain West IRA for administrative review.

Maintain Your Asset. Any income or proceeds generated by IRA-owned assets must be deposited into the IRA, and eligible asset-related expenses must be paid from IRA funds. Mountain West IRA provides ongoing administrative and recordkeeping services and processes authorized transactions at the direction of the account owner.

Key Requirements for Tax Liens & Tax Deeds in a Self-Directed IRA

State & County Requirements: Auction procedures, redemption periods, payment deadlines, and ownership requirements vary by location.
IRA Funds & Proceeds: Eligible asset-related expenses must be paid from IRA funds, and proceeds attributable to IRA-owned assets must be deposited directly into the IRA.
Prohibited Transactions: Account owners and other disqualified persons cannot personally use IRA-owned property or receive prohibited benefits from IRA-owned assets.
Account Owner Responsibilities: Account owners are responsible for researching the asset, understanding applicable requirements, and monitoring deadlines, redemption periods, and other obligations.

Why Choose Mountain West IRA?

Experience Since 2006: Providing self-directed retirement account administration and recordkeeping services since 2006.

Client-Directed Administration: You choose the assets held within your account. We process transactions at your direction and maintain account records.

Alternative Asset Experience: Our team has experience administering accounts that hold a wide range of allowable alternative assets.

Educational Resources: Access guides, videos, webinars, and other resources to better understand self-directed retirement accounts.

Personalized Support: Get responsive assistance with account establishment, administration, and transaction processing.

Frequently Asked Questions

Can I Buy Tax Liens or Tax Deeds With a Self-Directed IRA?

Yes. A self-directed IRA may purchase certain tax lien certificates and tax deeds, subject to applicable state and county laws and account requirements. Any income or proceeds generated by IRA-owned assets must be deposited into the IRA.

How Do Tax Liens Work in a Self-Directed IRA?

When property taxes remain unpaid, certain jurisdictions may sell tax lien certificates. A self-directed IRA may purchase eligible certificates and receive applicable redemption payments, including interest or penalties where permitted. Rules, redemption periods, and procedures vary by state and county.